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Dec 31, 2023
Rollins Q4 2023 Earnings Report
Rollins reported strong revenue growth, driving double-digit increases to earnings.
Key Takeaways
Rollins, Inc. reported a 14% increase in revenue to $754 million for Q4 2023. Operating income increased by 16% to $139 million, and net income increased by 29% to $109 million. EPS increased by 29% to $0.22 per diluted share.
Revenues increased 14% to $754 million; organic revenues increased over 7% and acquisition-related revenue increased approximately 7%.
Operating income increased 16% to $139 million; operating margin increased 30 basis points to 18.4% of revenue.
Net income increased 29% to $109 million; EPS increased 29% to $0.22 per diluted share.
Operating cash flow increased 24% to $153 million.
Rollins
Rollins
Rollins Revenue by Segment
Revenue by Segment
Residential Revenue
CapyFin.comCommercial Revenue
CapyFin.com Forward Guidance
Rollins anticipates strong organic growth supported by the health of core pest control markets and a commitment to operational execution, complemented by strategic acquisitions. A focus on pricing, modernization, and continuous improvement should support healthy incremental margins, while compounding cash flow and a strong balance sheet should enable a balanced capital allocation strategy.
Positive Outlook
- The underlying health of core pest control markets should support another year of strong organic growth.
- Rollins' ongoing commitment to operational execution should support another year of strong organic growth.
- A strategic and disciplined approach to acquisitions will further complement organic growth.
- A focus on pricing should support healthy incremental margins.
- Ongoing modernization efforts should support healthy incremental margins.
Challenges Ahead
- No specific negatives were mentioned in the provided text.
Revenue & Expenses
Visualization of income flow from segment revenue to net income